UK: CPI inflation likely to have moderated at 2.2% y/y – RBC CM

Sue Trinh, Head of Asia FX Strategy at RBC Capital Markets, explains that after a rapid jump to 2.3% y/y in February, for March RBC expects that UK CPI inflation will have actually moderated at 2.2% y/y.

Key Quotes

“Despite a pause in March, we still expect inflation to rise in the coming months to a peak of 3% y/y. The ONS’s new preferred measure of inflation, CPIH, which includes owner-occupiers’ housing costs, is expected to hold at 2.3% y/y although we look for CPIH inflation to exceed CPI for most of 2017.”